Page 1 of 10 UNIVERSITY OF SANTO TOMAS ‘AMV-COLLEGE OF ACCOUNTANCY COMPREHENSIVE EXAMINATION II TAC 11-PRACTICAL ACCOUNTING 1 NAME section) © On January 1, 2017, Bogota Corporation issued a P3,000,000, 6% convertible bonds at par. She bende mature in five years and interests are payable every December 31, The bonds may be converted into ordinary shares on the basts of 50 shares for each P2,000 bond. The -? £2 ny, par value of each share is P15. The interest rate for an equivalent bond-without the / conversion rights would have been 10%. : SDE 1. How much is the carrying value of the compound financial instrument as of December 31, 20187, - a. 2,619,548 62,701,503 6. 3,156,459 4. 3,074,504 — hicdls wed 2. How much is the total credit to equity account upon conversion assuming the bonds were converted on December 31, 2020? ~~" Bye a. 2,890,909 b. 3,345,865 . 1,095,865 4, 640,909 r ‘The following information is made available in relation to the defined benefit, plan of Nalrob| Company for the year 2017: 7 —> 400 ef fifa pee Current service cost 5 200,000 36 2500 Fair value of plan assets, 12/31/21 5,000,000", 76> — 200 Asset ceiling, 1/1/17 10,0007) 2 30» 48D Fair value of plant assets, 1/1/17 3,000,000 ply Gor Ce) Contribution to the plan 700,000 Discount rate 10% Defined Benefit obligation, 12/31/17 4,300,000 | Asset celling, 12/31/17 ‘850,000 t Benefits paid to retirees 400,000 ested Defined benefit obligation, 1/1/17 2,500,000 a5 oo 40) x 3What amount of net. defined benefit cost should be reported In the = statement of comprehensive Income for the year 20177 | a 90,000 ('B. 100,000 . 130,000 d. 190,000 4,/What is the total net remeasurement gain/loss to be reported as a 4 Y) E component of other comprehensive Income for the year 20177 3 (72. 60,000 b, 190,000 ¢. 350,000 4. 90,000 How much is the overfunding/undertunding for the year 20177 V a, 160,000 over b. 570,000 over —_¢. 600,000 under jone of the choices _ one ow much is the balance of prepaid pension (asset) or accrued pension bility) that should be presented in the statement of financial position as - of December 34, 20177 a. 100,000, 850,000 , 700,000 4. 5,000,000 “Bangkok Company is considering to glve bonus for Its new company CEO. The plan states ~1\ that the bonus would be equal to 15% based on profits after deducting bonus and tax. Profit before income t&X and banus for 2015 ts P10,000,000. Income tax rate is 30%, é éw much is the amount of bonus under the plan? i . 1,304, b. 1,099,476 . a 348 7 ¢. 950,226 4. 1,004,788 fe 1Si CNI- 6 ~ 46,, pi | O¢(vr-g >) ISZ@BNI = FoR) (os Sues$f She coupons will be redeemeg 1h December 31, 2017, the folowing agjusting entry wos meso Or premium outstanding. Premium expense 10,800 Estimated liability for premium 10,800 c 100 inary shares at . 6,352; 7 —— . Corp, leased a delivery truck under rene bert ease of uly ae e aT rf term of the lease will be P 3,000,000, 2 2S exp 2 85000/mo, Next 18 month PEO, cO0no, He 12 ronwe 2 facie. aa, 2=~ months at PRL rete evel ladles elle ev6y Jor jp » The following relate to, * 3 7 Ife of machine- m Ganvary 1 starting eruary 1, 2016. P50,000; Lease term 10 years; Useful ee cena : nte ‘rate -10%; Present value of an annuity ° A Phuc REYGIY tae rnin i Pre alo my oe ere O’IME periods - 6.76; Pair value of the machine-P400,000. fow much is the total HabliRiel related to the lease <6 December $4.) p PS: Ce 84 A i 343 Np 371,800 _b. 348,480 £286 A00 aa 2 a for the year 2017? ye eel cata amanactor) 4. 32,380 / 3. 28, Page 2 of 10accident with an auto jotice on December 24, red by Norway. Oslo’s gainst the company for 2 ach point within that 2 12 range of boint. On December 25, 2015, an soars any for damages suffered when one eee The legal counsel of the company = ‘ages ranging between P500,000 to 300,00 sstimate of the obligation, On March 1 2016, 3,000 and the company accepted ti fire at the production ‘area of Oslo Company damaged ice policy does >> filed @ P2M damages ‘ that such damages will be awarded to th F€ authorized to be Issued on March 1, DS How much is total provision that should be recognized as of December 31, a. 3,175,000 aa rants were exercised at a time when the markel °C aa of the stock Is P 100, how much is the total net effect om equityupon 2. d xercise of the warrants? _ - a. 1,400,000 b. 1,460,000 ¢. 460,000 4.0 ey Poetetary 3, 2015; Lima Hat Co. sold a machine te Peru Corp. and simultaneously leased 8 it back for 2 years. Pertinent information at this date follows: Sales Price, P360,000; Fair Nae 380,000; Carrying amount, P390,000, Monthly rentals, P31,986; Estimeted remelring Useful life, 12 years, 18, How much is the total loss for the year ended December 31, > ature rental sequal tothe marker a. 10,000 ——e, 20,000 . 30,000 4.0 Muscat Co. prepared a reconcillation between pretax financial income and taxable Income at the end of 2036, its first year of operations, as follows: ia 2, FOV, owe Pretax financial income P-9,000,0 sree ps << Provision for Iitgation 2,000,000 Sear Wey 1 Unearned rent income 4,320,000 ae DEDA= DIA 2 = aes yemp. tea fi be reversed in 2017-whéh It Is expected to be a timated litigation of P2,000,000 wi in aii Doll: The compar ecebeed tel eesentor P°1,980,000 representing a three-year leace # “from a lessee. The Income tax rate Is 30% for all years, 6 ‘tlability on December 31, 20167 3, 19, HOW much Is the deferred tax lial p BH 600,000 bb. 396,000 ¢. 996,000 do - 2017, fe ich is the current portion of Income tax expense for the year 2017, fuming the company reported pretax financial Income of 7,200,000 eR PENENMEET re ing 20177 wat - ete E4540 ee b. 1,164,000 AFBI MOOS : $970 ~ 2 Page 30f10